Larger Small Groups: Challenges to Bolstering New York’s Small Group Market

Second in a series, this report examines the risk of adverse selection in New York’s small group health insurance market following a change in the definition of what counts as a small business. The definition change, mandated by the Affordable Care Act, goes into effect in 2016; it could trigger a move by some employers with lower-risk employees to seek or retain more favorable insurance coverage outside the small group market. This report examines several factors to mitigate this risk.